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A.G. Schneiderman Sues To Shut Down Security Guard Employment Scam

Company Promised Work For Unemployed & Tricked Thousands To Pay For Costly “Training,” Though Jobs Didn’t Exist

Lawsuit Seeks Restitution For Thousands Defrauded

Schneiderman: New Yorkers Struggling With Unemployment Victimized; We Will Seek Maximum Penalties

NEW YORK – Attorney General Eric T. Schneiderman today announced that his office has filed a lawsuit against a New York City-based company behind an employment scam. The company known as both C.P. International Security, Inc. (C.P.I.) and Gateway Production Security, Inc., tricked out-of-work consumers into paying for expensive security guard training courses with false promises of employment. The lawsuit also names the individuals who have operated the company, Charles Pierre and Nicole Pierre.

The Attorney General’s office has already secured a temporary restraining order freezing any assets the company or Pierres may have, and temporarily barring them from advertising job openings or selling security guard training courses.

“At a time when many New Yorkers struggle with unemployment and to make ends meet, this company took advantage of vulnerable, out-of-work New Yorkers to make a profit,” Attorney General Schneiderman said. “My office will not tolerate fraudulent, deceptive and illegal conduct. We will seek the maximum penalties against this company as well as restitution for defrauded consumers.”

After receiving numerous complaints from victims of the fraudulent job scam, the Attorney General’s office conducted an undercover investigation that confirmed that the company posted phony security guard job listings online and in newspapers. The company targeted Spanish and Chinese-speaking consumers in particular by placing ads in Spanish and Chinese-language newspapers. C.P.I. would then tell consumers who responded to the advertisements that they had been selected for the positions, but first needed to complete a series of security guard training courses, at a cost of $399.

However, after paying for and completing the expensive training, consumers discovered that the jobs did not exist. Though C.P.I. had promised employment, it instead would offer “graduates” worthless “referrals” to security guard companies. When consumers attempted to pursue those referrals, they found that the companies that they were referred to had no knowledge of C.P.I., and were neither expecting the candidate for an interview, nor hiring.

In addition to making false promises of employment, C.P.I. also falsely represented that consumers must complete the entire $399 package of courses to be eligible to work as a security guard. In fact, only one of the three security courses in the series -- the eight hour pre-assignment training course -- is required to begin working as a security guard. In addition, C.P.I.’s training courses do not comply with state requirements for security guard training courses, including requirements for minimum hours of instruction and topics that must be covered.

The Attorney General’s lawsuit seeks restitution for the thousands of consumers defrauded in the scheme, as well as penalties and injunctive relief prohibiting the company from continuing to operate this scam.

Consumers seeking to enroll in security guard training courses should keep in mind that low-cost and even free security guard training courses may be available. For example, the State University of New York’s Manhattan Educational Opportunity Center offers free security guard training courses for individuals who meet certain income guidelines, and many community colleges offer low-cost security guard training courses.

Attorney General Schneiderman encourages victims or anyone with information about C.P.I.’s scheme to file a complaint with the Consumer Frauds and Protection Bureau. The forms are available here.

The case is being handled by Assistant Attorney General Benjamin Lee, Special Counsel Carolyn Fast and Investigator Andres Rodriguez, under the supervision of Deputy Bureau Chief of the Bureau of Consumer Frauds and Protection Jeffrey K. Powell, Bureau Chief Jane Azia, and Executive Deputy Attorney General for Economic Justice Karla G. Sanchez.